14,000 billion Tomans; the share of municipalities of value added tax in 2015

IUESA: Vice President of Tax Organization emphasizing that law has devoted 3% of VAT to the municipalities and said: in 2014 the amount of tax revenue devoted to the municipalities has reached more than 12,000 billion Tomans and it is predicted that in the current year it increases to more than 14,000 billion Tomans.

Mohammad Qasem Panahi said: there is a very high capacity in the country’s tax field and also important steps have been taken to improve tax collection in the recent years. Achieving full tax collection needs special hardware and software facilities such as law codification regarding executive guarantee and formation of databases.

The tax organization tries to increase tax collection without raising tax rate. We also try to identify new taxpayers and monitor turnover of individuals who did not pay their taxes for any reason to receive government right, he said.

Government should have a full supervision on the manner of flow of goods, services and capital in the country, he emphasized. If we monitor and control the process of import, product and its distribution, we can collect taxes correctly and even from middlemen according their activity rate, he said.

The Vice President of Tax Organization emphasized that the country’s tax capacity is nearly 15% of GDP. If financial disciplines govern in the country and also the private sector provides information in issuance and delivery of the sales invoice and cooperates with tax system, we can reach to this capacity without increasing tax rate gradually, he said.

He referred to the urban economics and emphasized that law has devoted 3% of VAT to the municipalities. In 2014 the amount of tax revenue devoted to the municipalities has reached more than 12,000 billion Tomans and it is predicted that in the current year it increases to more than 14,000 billion Tomans, he said.